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Paying for Action

Alastair Thompson talks to Jon Ostler of “The Performance Network”

The online advertising industry continues to mature with the launch of NZ’s first “performance-based” advertising network. The Performance Network (TPN), soft-launched in March this year by First Rate founder Jon Ostler, was, he says, “in response to demands by advertisers and publishers for new advertising options”.

The Performance Network

During 2005 we encountered a lot of demand from advertisers, publishers and agencies for new ways to place, run and pay for online advertising campaigns. There was a lot of interest in “cost per click” (CPC), “cost per lead” (CPA) and “cost per sale” (CPS) models.

This demand has been stimulated by overseas trends that now sees these forms of ad payment set to out strip the more traditional CPM rate card. Of course much of the CPC market is being driven by Google, Yahoo and MSN Search.